A study conducted by the Competition Authority proved that the reduction of the duty on the import of canned canned tuna to the extent of NIS 3.5 per kg, led to a decrease of about NIS 3.9 in the price to the consumer of the imported canned tuna, and to an average decrease of about NIS 2.7 per kg in the price to the consumer of canned tuna The tuna, including those packed in Israel.
The reduction in customs duties led to an annual saving of approximately NIS 38 million in household expenses, against a loss of government revenue from customs of up to approximately NIS 11 million.
The reduction of the import duty lowered the price significantly, photo: Michel dot com
In addition to the public benefit resulting from the decrease in the price for the consumer, it was found that at the same time as the reduction of the customs duty, the variety of products and brands marketed to the consumer in the food marketing chains increased, as well as the entry of new suppliers into the industry and a decrease in the concentration of the industry.
The timing of the publication of the report is not surprising and is related to the significant progress of the import reform in the food sector. As part of it, Israel for the first time aligned itself with the European quality standard in the food sector, when most of the standards unique to Israel in the field will be completely or almost completely canceled at the beginning of the year. Moreover, in recent weeks the Minister of Finance signed , Avigdor Lieberman on a decree to cancel the customs duty on the import of many food products (oils, sauces, fruits, pastries, jams and snacks, fresh, frozen and processed fish), a decree that also included the cancellation of the customs duty on canned tuna.
Lowered the import duty, photo: Oren Ben Hakon
The removal of the tariffs along with the cancellation of the standards unique to Israel, should significantly increase the volume of imports in the food sector and create greater competition.
At the same time, the question arises whether the importers will pass on the removal of the tariffs to the consumer?
According to the competition authority's research, the answer is fully yes
The Competition Authority views positively the policy of removing barriers to imports and calls for the continuation of this trend.
The Competition Authority's statement reads: "The commissioner of competition, attorney Michal Cohen, stated that the broad impact of the reduction in the tariff on the ton also on the competing products, which were not directly affected by the reduction, signals that the competitive potential inherent in the reduction of tariffs may be interpreted even beyond the predicted direct effects.
The commissioner also stated that this is another case where we clearly see how the easing of import barriers creates a competitive improvement and rolls into the consumers' pockets.
The competition authority's study, the results of which are being published today, was based on the data between 2013-2016, during which a tariff reduction was gradually implemented on imports of canned canned tuna to Israel, totaling NIS 3.5 per kilo.
During this period and also in the years that followed (between the end of 2013 and the end of 2017), there was a slow and continuous decrease in the price for the consumer of canned tuna in Israel, in a total amount of about NIS 3.3 per kilo.
The research was born out of the need to examine the prices of tuna compared to the price to the consumer of canned tuna which is affected by many factors, chief among them the world price of raw tuna, and the contribution of the customs reduction to changes in the price to the consumer.
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